RBoS consortium says bidding for entire ABN Amro group, has 'got the cash'

RBoS consortium says bidding for entire ABN Amro group, has 'got the cash'

	Published : Wed, 25 Apr 2007 14:07 By : Agencies Print this Story

AMSTERDAM (Thomson Financial) - The Royal Bank of Scotland Group consortium reiterated it is bidding for the entire ABN Amro Holding NV group, and has the cash to do so, but ruled out a separate bid for the Dutch bank's US unit LaSalle.

However, RBoS chief executive Sir Fred Goodwin said the consortium has not yet placed an official offer for ABN Amro, stressing it is establishing a 'constructive way forward' to create value for both its shareholders and those of ABN Amro.

Goodwin ruled out a separate RBoS bid for LaSalle, but said one of the key issues for the consortium going forward is to unpick ABN Amro's sale of LaSalle to Bank of America Corp.

'We will be looking for some guidance from ABN Amro on that,' he said, adding that the sale of LaSalle was 'more surprising than disappointing'.

He refused to confirm media speculation on what parts of ABN Amro each of the three banks in the consortium are eying, but said there is little overlap between the three banks and that quick agreements can be made.

Goodwin said the consortium -- which also includes Banco Santander Central Hispano SA and Fortis NV -- does not need to conduct a major due diligence exercise for the ABN Amro bid, stressing only 'light' due diligence is needed.

He said RBoS shareholders are 'confident' about the ABN Amro bid and that the consortium has 'got the cash' to afford the transaction.

Earlier today, the consortium made an indicative offer for the Dutch bank at 39 eur per share, some 13 pct higher than the value of the Barclays PLC offer as of the market close yesterday.

The RBoS consortium said this morning its offer for ABN Amro would comprise 70 pct cash and 30 pct in RBoS shares.

Aaron Gray-Block; aaron.gray-block@thomson.com

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